Etihad, the fast-growing Middle Eastern airline, has approached the Irish government to buy its 25 per cent stake in flag-carrier Aer Lingus, people with knowledge of the move said.

The approach comes after the debt-laden Irish sovereign said in September it would sell its stake in the national carrier. Leo Varadkar, Ireland’s transport minister, said that he would not sell it for less than €1 per share, which would value the stake at €132.4m ($183m) and the airline at €529.6m.